Savills has reported a rise in revenue but a drop in profits for the first half of this year.
It said group revenue was up 16% to £847m, but underlying profit before tax was down £4m to £38.4m.
Group pre-tax profits were down 7% to £24.7m.
Savills, which is active internationally and in a number of sectors, said that UK residential revenue was down 1.5%, reflecting lower sales volumes. Underlying profits in Savills’ sales business in the UK almost halved, plunging 44% from £6.3m to £3.5m.
However, UK residential lettings revenue was up 26%.
In the UK, its underlying profit was £22.2m, down from £23.7m for the same period last year.
Revenue from transactions was down 4% to £88.7m.
Savills describes the UK residential sales market as challenging, with trading volumes at the lowest level since the global financial crisis.
The average value of London residential property sold by Savills in the six months to the end of June was down 32% to £2.1m.
The average value of property sold outside London was £1.17m, up very slightly from £1.14m last year.
Savills group chief executive Mark Ridley said that in many markets, particularly the UK and Hong Kong, political and economic uncertainty has “considerably reduced the volume of real estate trading activity in recent months, although occupier demand remains robust”.
However, he said Savills has a robust pipeline for the rest of this year and expects its performance for the full year to be in line with the board’s expectations.
A rise in income is excellent in this market
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UK resi revenue down 1.5%. Revenue from transactions down 4%. Both not bad in this market but still down. Lettings revenue up 26%. Interesting to know what their new homes revenue did.
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UK transactions down. Imagine if you were a pay-anyway business model…
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